A: Keep the following in mind: the longer you spin out this matter, the greater the judgment against you will be at the end of the foreclosure process. Each step that your lender takes against you can be added to the costs as part of the final judgment against you.
The court’s patience in this regard is limited by the amount of equity (value) you have in your property. Furthermore, the court uses a sale value that assumes the worst price (forced sale) for your house. For examples:
Example A:
Forced sale value of house: $400,000.00
Amount owing on mortgage #1 <$200,000.00>
Amount owing on mortgage #2 <$ 50,000.00>
Potential Cost of the Law Suit <$ 60,000.00>
Value $ 90,000.00
Example B:
Forced sale value of house: $400,000.00
Amount owing on mortgage #1 <$350,000.00>
Potential Cost of the Law Suit <$ 60,000.00>
Value <$ -10,000.00>
In example A, there is a chance that the person in foreclose might end up with some money after the foreclosure process. The courts will let this person spin the matter out. ‘Spinning the matter out’ means that the costs of the lawsuit against you will be higher; this is because the lender is required to make more court applications.
In example B, the person in foreclosure has little chance of getting out of debt. There is no use in prolonging the matter, and so the court will allow the lender to proceed at a faster pace.
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